Bloomberg Law, Law360, LevFin Insights, and Reuters covered Steptoe’s success for SourceHOV Holdings LLC in a judgment enforcement litigation stemming from the merger that created Exela Technologies. On May 25, a Delaware vice chancellor refused to dismiss a judgment creditor’s suit seeking traditional and "reverse" corporate veil piercing against Exela and its subsidiaries in order to collect on a nearly $58 million-plus-interest merger stock appraisal award.
In a first-of-its-kind ruling in Delaware, Vice Chancellor Joseph R. Slights III denied the defendants' motion to dismiss a count seeking to pierce the corporate veil of the defendants. This will allow the plaintiffs to collect against the defendants, its subsidiaries, and all of its assets, to satisfy a long-standing appraisal judgment.
The Steptoe litigation team representing SourceHOV is led by partners Steve Davidson and Michael Baratz, with associates Claire Schachter, Lauren Goldschmidt and Emma Marshak.
The full articles can be read at Bloomberg Law, Law360, LevFin Insights, and Reuters (subscriptions required). An additional analysis of the decision can be read at the Delaware Corporate & Commercial Litigation Blog.